New Delhi, Aug 14
India remains among the best-performing economies in the world, and "we expect growth dynamics to continue in the medium term", with GDP increasing 6.8 per cent annually over the next three years, S&P Global said on Thursday.
India is prioritising fiscal consolidation, demonstrating the government's political commitment to deliver sustainable public finances, while maintaining its strong infrastructure drive.
"We forecast India's real GDP growth at 6.5 per cent this year, which compares favourably with emerging market peers amid a broad global slowdown," the global ratings agency said in a note
This is up from the 2 per cent of GDP from a decade before. Adding capital spending by states, total public investment in infrastructure is estimated at around 5.5 per cent of GDP, which is on par or higher than sovereign peers.
In the past three years, despite volatility in global energy prices and supply-side shocks, CPI growth averaged 5.5 per cent. In recent months, it stayed at the lower bound of the Reserve Bank of India's (RBI) target range of 2 per cent-6 per cent.
These developments, coupled with a deep domestic capital market, reflect a more stable and supportive environment for monetary settings.